Personal Income Tax In The United States

The arguments regarding federal progressive income tax has been represented to us through the United States Supreme Court, on the floors of congress, and in media. The revenue from taxes reached the objective of financing wars from the Civil War through World War II. At the same time deteriorating the economy with fewer dollars that could be used on imports, exports, and services (Henchman). Today, the United States deficit is $18,800,241,350,538.12 this is a grand total of 58,405.32 owed by every man, woman, and child (Brown). The legal illusion is presenting the question, is income tax legal? There are Americans today who believe income tax is not legal and stand by their beliefs in a movement that has cost many individuals considerably. I am interviewing such a person, his name is Bobby Ray and the history he presented to me was interesting, and has left me with more questions than answers.

The main topic of this research paper is taxation. Seeing that this topic is pretty open, I’ve chosen to write about the proposed idea of Fair Tax. Along with a little bit of insight on Fair Tax and a couple highlights of history, I’ll try and explain some pros and cons as well as give my opinion on the topic.

The Personal Income Tax Law is design to give income tax credit to senior citizen who rent in certain counties of the state of California. The Personal Income tax applies mainly to those senior citizen living in poverty levels and renting in the County of Alameda, the City and County of San Francisco, County of Ventura, and the County of Santa Clara. Certain qualifications must be met by the senior citizen requesting the income tax credit. Some of these qualifications includes being over the age of 62 years, the qualified residence must be the primary residence, name on the lease, income of less than $50,000, and live in the qualifying counties. Today, 20 percent of seniors, 65 years and older, already live below poverty level and Homelessness among senior citizen is on the rise.

This paper intends to address the question - “should the US converts to a zero personal income tax?” - by doing a comparative analysis between the United States of America (US) and a zero tax country somewhere in the world. Based on the research conducted, it was discovered that there are ten countries that operates a zero personal income tax system. Of these ten countries, Qatar (a country located in the Middle East) was chosen randomly for this analysis. It should be noted that the economies of these two countries are vastly different in terms of gross domestic products (GDP), revenue and spending. However, the focus of the paper is on Qatar’s strategies in operating its economy in the absence of personal income tax. And decipher whether the US can garner any useful data that will be instrumental in transforming its tax system, with the goal of abolishing personal income tax.

In the article Tax reform =Growth, the author Rory Meakin (2012) suggests that Australia has a good tax system but it still has its problems. He compares the tax system between Britain and Australia as well, and discusses the importance for the government to change its approach of raising taxes to make it cheaper, fairer and more legitimate in Australia. The article outlines the complexities of the taxation system in the country, which resulted to the lost of its legitimacy since many people do not understand how much they should pay. It advises the need for the government to make the tax system to be as neutral as possible by eliminating complications that will add confusion to its approach. The journal name tax reform equals to growth and he totally agrees that raising the tax and keeping the tax neutral is the better way to face the tax problems nowadays.

This paper examines the generally accepted desirable characteristic of a system of taxation. I describe in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system?

Taxes are an inevitable necessary part of life. While most of us become stressed out and suffer financially from taxes, it is a known fact that we enjoy many of the benefits of the process of taxation. To look at it from a positive point of view, we must remember a few important parts of our lives that are made possible from taxes. These include new highway construction and repairs, the building and maintenance of public parks and facilities, our law enforcement agencies, emergency services, and much of the health care system; all courtesy of taxes. This assignment will discuss the government’s need to raise and lower taxes and the outcome it has on the GDP and net personal income and other key factors that play part in the

Why do we need to pay taxes? Taxes are used to manage and develop the country including economic growth, education, health, transportation, public welfare, defense and maintaining peace in domestic, developing infrastructure. Moreover, taxes are the salaries of government officers. Taxpayers are the citizens who have an income. In some countries, citizens who have high income, usually pay higher taxes. On the other hands, those with low income may not be taxable at all. When the law imposes a duty to pay the taxes of the citizens and the business then, it must have been authorized to perform its obligations for tax evasion or tax avoidance as well as the filing of tax or payment of tax under the law.

Income tax brings a total revenue of nearly $160 billion. It’s the largest source of revenue from tax with a percentage of 47.1% of total tax revenue is taken up by income tax. However questions must be asked about what if the income tax is changed. The three issues which follow this change are as follows:

7. False – It shall be in writing either as trust inter-vivos or through a will.

Income tax is a vital source of funds to any government. Money raised by taxing the working population can be used to fund infrastructure development as well as improving the standard of living in the country. United Kingdom was the first the country to establish a working income tax on its civilians in 1799. Initially implemented as a temporary source of income to fund the war to beat Napoleon, income tax is now an essential source of revenue for the government all over the world. This report will look at the significance of income tax in the UK since the late 18th century, through World War 1 and World War 2, and how it has evolved into the tax system, currently in practice. Income tax still remains as a temporary tax, and must be

Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid.

India is now one the most highly taxed countries of the world .Almost every conceivable source of tax revenue has been bought into the tax system .The ratio of tax revenue to national income has increased to 23% .Over the years both direct and indirect taxes have become more and more progressive in general .In so far as income inequality is concerned the progression infused into the system has helped reducing gap between the rich and the poor to some extent .The reduction of marginal icome tax rate though appears to be competitive to progressivley in tax structure has in effect helped reduction of inequality indirectly through larger compliance and discouragement of tax evasion among the rich people The increase of exemption limit has

Taxes are use to shift resources from the private sector, including households and businesses, to the public sector. Due to this transfer, government is able to pay for the goods, services, and government operations expenditure. Levy tax also allows a government reallocating the resources(Engen and Skinner, 1996). If a government can reducing administrative costs of tax collection, minimize the tax evasion, maximize the tax base, taxing will be an effective way to raise revenues and to support government operation (Tanzi and Zee, 2000). In the other word, by levying tax, it is possible for government to redistribution of wealth since government

The persistent decrease in the price of crude oil have led to the increase in the consciousness on the importance of tax as an important source of revenue. Tax is very pivotal in attaining growth and development in any known human society in that help provide basic infrastructures and social amenities for the people. Hence, the various tiers of government resort to the use of tax in ensuring they provide their social will to the people they governed. This academic write-up however focuses on the how tax and taxation system is geared towards growth and development in Nigeria using Lagos State specifically as a major point of refence.